Chair White Wants More Investment Adviser Examinations and Enforcement
SEC Chair Mary Jo White, testifying before Congress about the SEC’s budget requests, focused on the need to increase examination coverage of investment advisers and investment companies and to expand the enforcement program. Asking for 127 additional examiners, Ms. White warned that the “need for significant additional resources” for more examinations “cannot be overstated” because it is “vital to the SEC’s ability to protect investors and the nation’s securities markets.” Ms. White cited the growth in the number of advisers and assets under management and the proliferation of complex financial products. The SEC also requests funding for 52 additional Enforcement Division positions to “enhance its enforcement function.”
OUR TAKE: Given the SEC’s wide scope of regulatory jurisdiction (markets, exchanges, public offerings, brokers, financial statements, etc.), the investment management community must take notice that Chair White focuses so much attention on investment adviser and investment company examinations and enforcement.